Theranos. When the benefits of fraud greatly outweighs cost of fraud, companies and people will commit fraud.

HSBC money laundering for criminal cartels. Big companies will commit outright crimes and when caught, simply pay some fines that is much less than the profit.

How does the market differentiate between money losing startup, like Amazon of past, and some money losing penny stock pitching free energy electric car engine, aka perpetual engine ? Lots of muddy waters and shady regulations that hide many fraudulent companies preying on people.